Fosun Guo Guangchang returns to China; NetEase has waited for a new batch of game version numbers

Original link: https://www.latepost.com/news/dj_detail?id=1312

Fosun Guo Guangchang returns to China

In the past year, nearly half of Fosun Group’s revenue came from overseas. The easing of the regional situation has allowed overseas business to resume double-digit growth.

Guo Guangchang, chairman of the group, said in some controversial voices, “Going out is for a better return, and integrating global resources is for us to develop better in China.”

This is part of an internal letter he wrote on a flight from Paris to Shanghai at the end of 2017.

Now the familiar thing happened again.

On September 13, Guo Guangchang, who had not posted on Weibo for nearly six months, resumed updating, saying that he had just finished a few months of overseas travel and traveled to nearly 40 cities in more than 20 countries. Now quarantined in Shanghai as required. Then he said:

…Visit many overseas friends, please drink our Shede wine, taste Chinese wisdom, and convey Chinese confidence to overseas. I have always believed that globalization is the common interest of all mankind, and Fosun’s competitiveness lies in its vision and capabilities of globalization. More importantly, as a company rooted in China, China will always be the most important base for Fosun. Whether overseas or during quarantine, my domestic business is always on my mind. In the future, it is hoped that Fosun can realize mutual empowerment and high-speed growth in the global ecology while deeply cultivating China. —— Guo Guangchang, Chairman of Fosun Group

There is also a typo in this sentence. “Multiplying” should be “growing”.

Guo Guangchang updated his personal Weibo at a time when the operation of Fosun Group was questioned. A few hours before his update, China Business News reported that Beijing’s SASAC had notified the city management company to sort out the cooperation with Fosun Group. Fosun Group confirmed the SASAC’s action, but “it is a routine information collection work in the Beijing SASAC system, and it is not targeted.”

On August 23, rating company Moody’s downgraded Fosun’s rating from Ba3 to B1 with a negative outlook. Moody’s is one of the world’s three largest credit rating companies, and their ratings on companies and governments determine the amount of the latter’s international financing interest. The higher the rating, the lower the interest.

  • Aaa with the highest credit quality and lowest risk in the Moody’s rating system, followed by Aa, A, Baa… all the way to C;
  • English letters can be followed by 1, 2, 3;
  • Aaa is better than Aa, and Aa1 is better than Aa2.

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According to Moody’s rating description, Fosun’s original Ba3 rating means that the company has “high credit risk”, and the bonds of related companies are “with a certain speculative element”. The downgraded B1 means that the bond itself is still speculative (commonly known as “junk bonds”) with high credit risk.

Moody’s said in the report:

“The downgrade reflects Fosun’s weak liquidity position, increased refinancing pressure due to a challenging onshore and offshore funding environment, and execution related to the divestiture plan against the backdrop of slowing economic growth and capital market volatility. Risks… The negative outlook reflects the refinancing uncertainty and execution risks associated with Fosun’s sale of assets to repay its substantial debt maturing over the next 12 months, as well as the company’s ongoing challenges in balancing liquidity needs and maintaining portfolio quality. challenge.”

Fosun said this was an overly pessimistic interpretation by Moody’s on economic and market conditions, and the downgrade did not affect its solvency.

Compared with 2017, the revenue structure of Fosun Group has not changed much, and nearly half of its industries are still overseas. In the first half of this year, it contributed about 46.76% of revenue (38.759 billion yuan).

According to data from Fosun International’s 2022 interim report, as of the end of June this year, they held a total of 117.1 billion yuan in cash and about 123.6 billion yuan in debt to be repaid within a year. On September 2, Fosun Hi-Tech reduced its stake in Fosun Pharma by about 3%, cashing out about 3.2 billion yuan. According to the “Changjiang Commercial Daily”, Guo Guangchang controls at least 11 mainland and Hong Kong stock companies.

In the first half of this year, Fosun International achieved an operating income of 83.8 billion yuan and an operating loss of 988 million yuan, a year-on-year increase of 17% and an improvement of 41% respectively. The stock price fell 39% during the year. The two flagship companies headquartered in Shanghai, Fosun Pharma and Yuyuan, saw their operating profits fall 23% and 38% year-on-year in the first half of the year, respectively. (Gong Fangyi)

A new batch of game version numbers, NetEase waited

On September 13, the State Press and Publication Administration released the approval information for domestic online games in September, with a total of 73 games. Among them, NetEase’s “All-Star Street Ball Party” is listed. This is the first game version number that NetEase has obtained since the “Egg Party” in July 2021.

Ding Lei, chairman of NetEase, once said in the company’s second-quarter earnings conference call that the game version number is “a very scarce resource” for NetEase, which makes them cherish the domestic market even more.

In the days when there was no version number, Ding Lei said that the team’s R&D strength had to be adjusted to Europe, America, Japan and South Korea to develop game products for the local market, and overseas game markets such as Europe, the United States, Japan, and South Korea were important business development directions for NetEase in the future. .

In the second quarter of this year, NetEase’s revenue and profit both increased by double digits, and the gross profit margin of 55.88% was the highest since the fourth quarter of 2016. At present, NetEase’s core mobile games include “Fantasy Westward Journey”, “Endless Lagrange”, “Harry Potter” and “Diablo: Immortal” which will be launched in June. According to Sensor Tower data, in the month following its launch, the cumulative overseas revenue of Diablo exceeded US$100 million. (Gong Fangyi)

Mindray Medical founder Li Xiting is Singapore’s richest man

Recently, Forbes released the 2022 Singapore Rich List, and Mindray Medical founder Li Xiting was named Singapore’s richest man with US$15.7 billion. The Huang Brothers, the actual controllers of Far East Organization, ranked second. Wu Qingliang, founder of Nippon Paint, ranked third for three consecutive years with US$10.8 billion.

This is the second consecutive year that Li Xiting has been the richest man in Singapore. Due to the surge in demand for products such as monitors and ventilators during the epidemic, Mindray Medical’s performance has grown, and the stock price and market value have also risen sharply, with the stock price reaching a high of nearly 500 yuan. However, with the slowdown in centralized procurement and performance growth, Mindray Medical’s share price has dropped to around 300 yuan, and Li Xiting’s wealth has also shrunk by nearly one-third to $15.6 billion.

  • In the first half of this year, Mindray Medical’s revenue reached a new high, up 20.17% year-on-year to 15.356 billion yuan.

In second place with a gap of US$400 million are brothers Huang Zhixiang and Huang Zhida, whose fortunes will rise to US$15.2 billion from US$14.2 billion in 2021 due to Singapore’s property recovery. Before 2019, the Huang brothers had been Singapore’s richest man for nine consecutive years. Wu Qingliang, a 95-year-old paint tycoon, whose net worth fell 30% to $13 billion, remained firmly in third place.

Meta’s co-founder, Eduardo Saverin, dropped from No. 2 last year to No. 4, with his net worth more than halved to $9.6 billion. Guo Lingming, executive chairman of Urban Development, rose to fifth with a fortune of US$9.3 billion.

Haidilao founder Zhang Yong, who topped the list from 2019 to 2020, dropped to sixth this year. Haidilao has grown rapidly due to its global expansion strategy. Zhang Yong’s net worth jumped to US$19 billion in 2020. However, due to expansion against the trend, Haidilao’s performance suffered losses and the stock price fell. This year, Zhang Yong’s wealth has shrunk by US$11.3 billion to US$7.7 billion.

  • In the first half of 2022, Haidilao’s revenue was 16.76 billion yuan, a year-on-year decrease of 16.6%; the net loss was 267 million yuan.

Benefiting from the surge in demand for games and online shopping during the epidemic, Sea founder Li Xiaodong, whose net worth has risen sharply, once reached $21.1 billion. Since the beginning of this year, the group’s share price has fallen sharply due to losses in its e-commerce business, and its wealth has shrunk by 66.7% to US$4.4 billion. (Intern Zeng Xing)

Domestic Mid-Autumn Festival tourism revenue fell 17% year-on-year

According to the data center of the Ministry of Culture and Tourism, during the Mid-Autumn Festival holiday (September 10 to 12), nearly 73.41 million domestic tourists traveled across the country, a year-on-year decrease of 17%, and the domestic tourism revenue was 28.68 billion yuan, a year-on-year decrease of more than 20%. It returned to the 60% level in 2019.

The per capita tourism expenditure recovered faster. The per capita tourism expenditure (domestic tourism income/domestic tourist arrivals) during the Mid-Autumn Festival holiday in 2019 was 468 yuan, and this year it was 391 yuan, which has recovered to 80% of the pre-epidemic level.

Compared with the Qingming and Dragon Boat Festival holidays in the first half of the year, fewer people go out to play during the Mid-Autumn Festival, but spend more money. The tourism revenue of the Mid-Autumn Festival holiday this year is 30% higher than that of the Qingming holiday and more than 10% higher than that of the Dragon Boat Festival holiday. According to Ctrip data, the average daily order volume during the Mid-Autumn Festival holiday increased by double digits compared with the Dragon Boat Festival holiday, and more than doubled compared with the Qingming Festival and the “May Day”.

During the Mid-Autumn Festival, people don’t spend much money on watching movies. The total box office revenue of the Mid-Autumn Festival was 370 million yuan, down 25% year-on-year, hitting a new low in the past five years. The previous summer box office revenue increased by more than 20% year-on-year. (intern Xue Yujie)

Know later丨Dingdang Health, which is backed by Renhe Pharmaceutical, goes to Hong Kong for listing

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There are at least 3 IPOs in A shares this week.

  • Liante Technology: Raised 727 million yuan to engage in R&D, production and sales of optical communication transceiver modules.
  • Juquan Technology: Raised 1.492 billion yuan, it is mainly engaged in the research and development, design and sales of smart grid terminal equipment chips. The main products include energy metering chips, smart meter MCU chips and carrier communication chips.
  • Weiwan Seal: Raised 560 million yuan, it is a high-tech enterprise engaged in the research and development, production and sales of hydraulic and pneumatic sealing products.

There are at least 2 IPOs in Hong Kong stocks this week.

  • Dingdang Health, formerly known as Dingdang Kuaiyao, was established in 2014 and its founder was Yang Wenlong, the actual controller of Renhe Pharmaceutical. As a service provider that provides digital medicine and health at home, its core business includes fast medicine, online diagnosis and treatment, and chronic disease and health management.
  • According to the Frost & Sullivan Report, Dingdang Health ranks third in China’s digital retail pharmacy industry in terms of revenue in 2021, with a market share of 1.0%, Alibaba Health and JD Health are the top two in the retail pharmacy market; Dingdang Health is in the It ranks first in instant medicine, with a market share of 6.8%.
  • INTERRA ACQ-Z: Incorporated on January 11, 2022, the fourth listed SPAC company in Hong Kong to conduct M&A transactions of special purpose acquisition companies.

U.S. stocks had at least six IPOs this week.

  • Wearable Devices, developer of non-invasive neural input technology
  • Clinical stage biopharmaceutical company Jupiter Neurosciences
  • Pennsylvania Community Bank LINKBANCORP
  • Former AIG retirement services and life insurance business Corebridge Financial
  • Blood Glucose Monitor Developer Know Labs
  • Inflammatory disease biotechnology company Third Harmonic Bio (intern Zeng Xing)

OTHER NEWS

Squid Games won the Emmy Award for Best Director and Actor.

“Squid Game” was launched in September last year and ranked first in the world in the Netflix TV program category for seven consecutive days, with more than 140 million viewers. After the show became popular, Netflix’s global paid subscribers exceeded expectations in the third quarter of last year, with a net increase of 4.38 million . After the play was awarded, the media company Bucket Studio, which holds shares in the actor’s brokerage company, rose 12% and closed up 2.2%. Its share price rose more than 70% in the South Korean stock market in three days last year. Netflix has announced that Squid Game 2 will be available in 2024.

Taote adjusted the first indicator of its business twice within three months.

“LatePost” exclusively learned that after entering the new fiscal year in April this year, Taote, whose annual number of buyers has reached 300 million, adjusted the first indicator of its business, from focusing on the growth of users to focusing on GMV (transaction value), a short period of time. Two months later, the first indicator was adjusted to MAC (monthly active users). ( See the exclusive content of LatePost later )

Yu Minhong: A turbulent life is never afraid of nothing.

Last weekend (September 11), Yu Minhong published a transcript of his conversation with Dangdang founder Li Guoqing in April this year on his personal WeChat account ” Lao Yu Gossip “. Yu Minhong said at the time that the stock price of New Oriental had nothing to do with his realistic ideals. In the future, he would focus more on education and education products-related fields, and he had already started planning to retire.

The Communication University of China has reported a total of 33 confirmed cases.

  • On September 12, 188 new cases were confirmed locally, including 126 in Sichuan, 11 in Tibet, and 10 in Beijing. There were 727 new asymptomatic infections, including 199 in Tibet, 145 in Guizhou, and 84 in Sichuan.
  • Sichuan added “126+84”, Chengdu added “18+26”, and strict social control measures are still implemented in 9 areas of Chengdu.
  • As of the 12th, Guiyang has reported 16 confirmed cases and 475 asymptomatic infections.
  • On the 13th, Guiyang City Gui’an District carried out nucleic acid testing and antigen self-examination.
  • From 0:00 to 15:00 on the 13th, 16 new patients with new coronary pneumonia were added in Beijing, all of whom were quarantined and observed.
  • On the 13th, 2 cases of asymptomatic infection were found in Changsha County, Hunan Province, among the returnees from other provinces.

This year, Hong Kong-listed companies repurchased a total of HK$52.3 billion, a scale that exceeded that of last year.

As of September 12 this year, 178 Hong Kong-listed companies have repurchased shares, an increase of 30% year-on-year, and the total amount of repurchases has doubled compared with the same period last year. Among them, the repurchase amounts of Tencent Holdings and AIA were HK$15.6 billion and HK$15.1 billion respectively.

Sports fashion brand MLB cross-border beauty, China is the first market in Asia.

Recently, MLB and sister group F&CO of the same parent company jointly launched the beauty brand MLB BEAUTY, with China as the first market in Asia. At present, the MLB beauty Tmall flagship store has been launched, mainly for a number of products in the two categories of perfume and air cushion, with prices ranging from 160-560 yuan. In 2020, MLB launched a men’s skin care product kit including facial cleanser and moisturizing lotion.

Xu Jiayin asked Evergrande to fully resume work before September 30.

On September 12, Xu Jiayin informed Evergrande about the resumption of work and production at the Evergrande Group’s weekly meeting on resumption of work, production, and delivery, and made a request. He said that there are currently 706 construction projects in the country, 668 projects have resumed construction, and 38 projects have not resumed construction. Companies in relevant regions are required to fully resume work before September 30. In addition, Evergrande has not disclosed its 2021 annual report and this year’s semi-annual financial report.

One year after the park opened, the number of employees at Universal Studios Beijing was reduced to 9,000.

According to media reports, as of the end of August, the number of employees at Universal Beijing Resort had decreased by about 25% from when it opened to about 9,000. Since May, the park has been closed for nearly two months due to the epidemic. After the resumption of work, the number of tourists has been limited and business hours have been shortened, causing Beijing Universal Resort to face losses and layoffs.

Gas anxiety spurs 35% increase in German electric heater sales.

According to media reports, German electric heaters are selling well over fears of gas shortages. According to data from Gfk, Germans bought about 600,000 electric heaters in the first half of this year, a year-on-year increase of nearly 35%. In response, the German power sector said it could lead to overwhelmed power grids this winter. In addition, the shortage of natural gas will make it impossible to pasteurize milk in France, and French yogurt factories may stop production.

It was revealed that the Shanghai headquarters was empty, and the default payment amounted to 200 million yuan.

According to a report from Blue Whale Finance, recently, the office space of Yangquan’s headquarters in Jing’an District, Shanghai has been empty. The notice posted by the property owner shows that Yangquan has been in arrears of rent and other expenses for a long time. Earlier, Zeng Bibo, founder of Ocean Terminal, revealed that the company owed 200 million yuan in payment for goods and 38 million yuan in security deposits, and the court had frozen the company’s bank funds for preservation.

The foreign ministry called the U.S. plan to expand restrictions on chip exports to China “totally technological hegemony.”

In response to rumors that the United States plans to expand restrictions on U.S. companies exporting chips to China next month, including artificial intelligence chips and chip manufacturing equipment, the Chinese Foreign Ministry called it technological hegemony. It is not constructive to always control the low end of the industrial chain.” Last month, Nvidia said it had been asked by the U.S. government to restrict exports of two top products to China.

The first batch of iPhone 14 Pro sold out, and Apple’s stock price rose nearly 4% in a single day.

Stimulated by the booking data, on September 12, Apple’s stock price rose 3.85%, the largest one-day increase since May. Recently, Apple analyst Ming-Chi Kuo said that the iPhone 14 Pro series in China accounted for about 85% of the order allocation, and the proportion of orders for Pro models was higher than in previous years. The Nasdaq 100 is down more than 20% this year, while Apple shares are down only about 8%.

Apple officially pushes iOS 16.

The iPhone 8 series and later models can be updated to iOS 16. The new version has updated functions such as “Information”, “Mail” and “Map”, launched a lock screen interface that can be edited by itself, and added the function of editing or withdrawing sent information. Netizens reported that after the update of iOS 16, WeChat had problems such as flashback and inability to open. Previously, there were many applications that could not be opened during iOS 16 testing, and many applications have been adapted to solve this problem.

Intel slashed the IPO valuation of autonomous-driving unit Mobileye, or delayed its IPO.

Intel is currently valuing Mobileye at about $30 billion, people familiar with the matter said, down from an initial estimate of $50 billion. Intel may delay Mobileye’s IPO until next year, as the stock market slumped, instead of the middle of the year. Since the beginning of this year, the Philadelphia Semiconductor Index, which tracks the performance of chip stocks, has fallen by more than 30%, and Intel’s share price has fallen by nearly 40%.

Oracle’s quarterly revenue was $11.445 billion, and net profit fell 37% year-on-year.

Thanks to the transition to cloud computing and the acquisition of Cerner, a provider of medical records systems, Oracle’s revenue rose 18% year-on-year to $11.445 billion in the three months ended August 31, with cloud business revenue up 45% year-on-year. Net profit was US$1.548 billion, down 37% year-on-year. The company expects revenue to rise 15%-17% in the next quarter, below analysts’ expectations.

Most Twitter shareholders voted to sell the company to Musk.

Twitter is still not giving up on being sold, people familiar with the matter said, most Twitter shareholders have voted in favor of the company and Musk’s acquisition agreement, and the vote will close on Tuesday local time. Earlier, Musk’s lawyers claimed that Twitter paid whistleblowers $7 million in “hush fees” as another reason to cancel the deal. Twitter responded that this behavior did not violate the acquisition between Musk and Musk protocol.

On this day in 1985, Nintendo’s Super Mario Bros. was first released.

UNESCO said on September 13 that on September 13, 1985, the game “Super Mario Bros.” produced by Nintendo was released for the first time, “This side-scrolling game is a classic in the field of video games. and 2D design style has been influential, inspiring many imitations, sequels and spin-offs.”

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Text | Gong Fangyi, intern Zeng Xing, and intern Xue Yujie

Editor | Gong Fangyi

The title picture shows the headquarters of Fosun Group (the 1st and 2nd buildings from the right of the picture), source: Fosun Group official website

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